Heritage, Diamond Banks To Acquire Enterprise Bank

Two of Nigeria’s financial institutions, Heritage and Diamond banks are set to acquire Enterprise Bank, Aproko247 can report.

Heritage bank is one of the fastest-growing banks in the country and as a way of expanding its operations and giving its services to more Nigerians, the financial institution is set to add Enterprise bank into its fold, just as the deadline for submission and opening of bid documents submitted by investors for the acquisition of the defunct Spring Bank, which was rescued by the federal government in 2011 and managed by the Asset Management Corporation of Nigeris, AMCON, draws closer.

AMCON had on September 22, 2013 formally invited interested buyers to express interests in acquiring its 100 per cent stake in Enterprise Bank Limited, one of the three banks nationalized by the Federal Government in 2011.

Afribank, Spring Bank and Bank PHB were nationalized in 2011. AMCON then recapitalized them and changed their names to Mainstreet Bank, Enterprise Bank and Keystone Bank, respectively.

AMCON holds the non-performing assets of troubled banks.

The corporation had in July appointed Citigroup and Africa-focused investment bank, Vetiva Capital, to manage its divestment from Enterprise Bank.

According to the public notice, upon the receipt and evaluation of the expression of interest, a shortlist of buyers will be prepared and they will proceed to the first phase of the transaction.

Based on its 2012 audited accounts, Enterprise Bank has seven subsidiaries and 150 branches, with total assets of N263.5bn ($1.6bn) and total equity of N31.9bn ($195.3m), AMCON said in the notice.

Findings by our correspondent reveal that some Managing Directors of banks who are at the fore-front of acquiring Enterprise Bank are now being blackmailed. The smear campaign is aimed at blackmailing some interested and qualified parties from continuing with their bid to acquiring the rescued bank.

Sources close to the Managing Director of the said Banks maintained that some of them are now being singled out as perceived enemies and those perceived to be fore-runners are now being harassed and victimized.

Some of the banks at the fore-front of acquiring Enterprise Bank are Diamond Bank Plc, Heritage Bank Limited, Standard Chartered Bank, Skye Bank and other investment groups.

Others include Fidelity Bank Plc, Sterling Bank Plc, Stanbic IBTC Bank Plc and investors like Taunus Holdings, Sahara Energy, Obat Oil and about 12 private equity firms backed by experienced bankers as well as financial and investment analysts.

An industry watcher, Dr. Abayomi Idowu said, ”We believe that organizations that require branch network should naturally be given an opportunity to acquire Enterprise Bank to enable them keep staff after the sale of the bank”.

Noting that the welfare of members of staff of the bank should be priority to both AMCON and the CBN he said “this should not be another era of mudsliding as the welfare of the bank and the interest of the both the nation and the bank investors should be made paramount”.